The VCE Accounting examination

One written examination at the end of the year: 15 minutes of reading, then 2 hours of writing for 100 marks of short-answer and extended-response questions, many in several parts and some built on a scenario or a report. Every question is compulsory, and you write in a separate Answer Book.

Examination	One written examination at the end of the year: 15 minutes reading, 2 hours writing
Marks	100 marks, all questions compulsory
Questions	Short-answer and extended-response, many in several parts
Study score	Examination 50%; School-assessed Coursework 25% in each of Units 3 and 4
Equipment	One scientific calculator

What is examined

Every outcome of Units 3 and 4 and the study design's Characteristics of the study, which set the qualitative characteristics, assumptions and elements, the GST rules, the inventory cost methods, doubtful debts, closing entries and the financial indicators.

What you are not asked to do

Calculate financial indicators: you are expected to know them, interpret them and analyse what they show.
Draw graphs: you are expected to interpret and analyse them.
Use a computer: no ICT is needed. Bring one scientific calculator.

About a minute a mark

120 minutes of writing for 100 marks is a little over a minute a mark. Our timed papers run on the same time for the same marks, so you practise that pace; their structure is our own, not a published format.

Try 2 questions

Question 1 · Short question · Accounting reports2 marks

Classified accounting reports

Before balance day adjustments, the records of Banksia Bikes at 30 June 2026 show: Cash at Bank $5,200; Accounts Receivable $24,000; Allowance for Doubtful Debts $1,300 (already adjusted); Inventory $41,000; Prepaid Insurance $6,000; GST Clearing $1,100 credit.

Balance day information:

1. Insurance of $6,600 including GST was paid on 1 February 2026 for the 12 months to 31 January 2027 and recorded as Prepaid Insurance (the GST was recorded when it was paid).

2. Inventory includes goods that cost $2,400 and can now be sold for only $1,700 (net realisable value).

3. Commission of $800 (excluding GST) was earned in June 2026 but will not be received until July.

What are Total Current Assets at 30 June 2026 after the balance day adjustments ($)? (2 marks)

Question 2 · Short question · Evaluating performance2 marks

Evaluating performance

Inventory turnover at Outback Optics improved from 75 days in 2025 to 60 days in 2026. Cost of goods sold for 2026 was $365,000.

Inventory was $60,000 on 1 July 2025. On 30 June 2026 the business wrote down obsolete inventory by $18,000, which lowered closing inventory from $78,000 to $60,000. The write-down is reported as an adjustment to gross profit, not in cost of goods sold.

Which conclusion is supported? (2 marks)

Inventory is selling 15 days faster than in 2025, which shows that both purchasing and selling have improved over the yearThe write-down has no effect on inventory turnover, because it is an expenseWithout the write-down turnover would be 69 days, so most of the improvement comes from writing down unsaleable stockTurnover has slowed, because 60 days is fewer than 75 days

Next step

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The VCAA's VCE Accounting examination specifications page

Questions people ask

How long is the VCE Accounting examination?

15 minutes of reading and 2 hours of writing, for 100 marks.

Is there multiple choice?

No. The examination is short-answer and extended-response questions. Our practice uses a few choice questions only to drill knowledge.

Do I have to calculate financial indicators?

No. You need to know what each indicator measures and to interpret and analyse it, but you are not asked to calculate one in the examination.